Tag Archives: Small Business Administration

News, Politics, Government

Simple Changes Offer Big Solutions In Small Business Lending

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By Young Entrepreneur Council, Contributor

Last month, new life was breathed into an effort to bring back some popular small business lending provisions that expired shortly before the 2012 presidential election. These expired programs enabled a record number of small businesses to refinance commercial mortgages. The renewed push to reinstate the programs, along with some additional policy changes, can go a long way toward aiding Main Street’s recovery. President Obama has done a number of positive things to help the small business sector. Business startups are up 8 percent from 2009 to 2011, and U.S. Small Business Administration loan processing reforms helped increase the number of small businesses that received financing in recent years. But more can be done, and Congress has stepped up recently. In March, House and Senate lawmakers introduced legislation to revitalize several successful programs from the Small Business Jobs Act of 2010 which expired just as they were gaining momentum. U.S. Senator Mary L. Landrieu (D-LA) recently introduced legislation (S.289) called the Commercial Real Estate and Economic Development (CREED) Act. In addition to Landrieu, Sen. Jeanne Shaheen (D-NH), Sen. Clair McCaskill (D-MO) and Sen. Johnny Isakson (R-GA) are co-sponsors of the CREED Act.  Rep. Judy Chu (D-CA) and Rep. Tom Petri (R-WI) announced support as well. Rep. Chu introduced a House version of the CREED Act, H.R. 1240. By expanding some SBA programs and loosening restrictions on others, capital flow to entrepreneurs can be increased. Here’s what I believe needs to be done: 1. Bring back successful refinancing programs. In 2010, the SBA created two temporary programs that enabled existing small businesses to refinance conventional loans at low rates. Such loans reduce mortgage interest burdens on business owners, helping to stimulate the economy. The First Mortgage Lien Pool (FMLP) program and the refinance provision for the SBA 504 program were both wildly successful and zero-subsidy, but they expired in September 2012 even though allocation limits were never within reach.  (Borrower and lender fees were slightly increased to offset any projected future losses in the program.) Bringing back these loan programs for another two years would greatly benefit entrepreneurs nationwide by offering access to much needed credit and growth capital.  It’s important to note that since these programs are not funded by the government, they have negligible impact on the federal budget. Furthermore, funds for these kinds of loans were never used before the programs expired, essentially leaving $15 billion “on the table” that could have been used by entrepreneurs. Reauthorizing these programs for a longer term, for example five years or until the authorized funds are spent, could represent an even better option. 2. Enable some small business lenders to expand. Currently, the Certified Development Companies (CDCs) that administer the federal portion of SBA 504 loans are limited to very specific geographies. This has led to a concentration of lending expertise in a few major market areas while leaving other areas underserved. Relaxing the geographic restrictions and enable qualified CDCs to expand into underrepresented areas. By allowing a free-market approach to flourish, more options —

From: http://www.forbes.com/sites/theyec/2013/04/11/simple-changes-offer-big-solutions-in-small-business-lending/

Business, Finance, Occupation & Industry

U.S. Ex-Im Bank Recognizes JPMorgan Chase for Its Commitment to Helping Businesses Grow

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By Business Wirevia The Motley Fool

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U.S. Ex-Im Bank Recognizes JPMorgan Chase for Its Commitment to Helping Businesses Grow

J.P. Morgan awarded Ex-Im Bank Lender of the Year; financed $291 million in 2012

Chase lent $20 billion to American small businesses in 2012, third consecutive year as #1 SBA lender

NEW YORK–(BUSINESS WIRE)– In recognition of its commitment to helping the economy grow and support small and medium-sized businesses in the U.S., J.P. Morgan today received the Lender of the Year award from the Export-Import Bank of the United States (Ex-Im Bank).

In 2012, J.P. Morgan employed more than $291 million of the Ex-Im Bank’s Working Capital product, a program that helps J.P. Morgan extend credit for the export of U.S. goods and services by allowing the bank to accept trade-related inventory as collateral. Last year, $181 million went toward supporting small businesses. J.P. Morgan has consistently been among the top five most active users of Ex-Im Bank’s Working Capital program.

“J.P. Morgan has done a terrific job of reaching small- and medium-sized businesses,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “We look forward to continuing our work with J.P. Morgan and ensuring that American exporters have access to the financing they need to grow their companies and succeed in the international market.”

“Our Global Trade business is proud to support so many small and mid-sized companies by lending to corporations around the globe,” said Daniel Cotti, J.P. Morgan’s head of global trade for the Corporate & Investment Bank. “The US Ex-Im Bank has been a critical partner so that our financing activities ultimately support the growth of American businesses and exports. We plan to increase our engagement even further in the months and years to come.”

The Lender of the Year award from Ex-Im Bank follows the U.S. Small Business Administration‘s announcement that Chase was its #1 lender by approved units. Overall, Chase provided more than $20 billion in new credit to American small businesses in 2012, up 18% from the prior year, and increased its lending to middle market companies for the 11th consecutive quarter.

“JPMorgan Chase is committed to helping small and medium-sized businesses grow and compete in the global marketplace,” said Scott Geller, CEO of Chase Business Banking. “We are proud of the work we’ve done and are continuing to do our …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

9 Critical Numbers About BB&T

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By John Maxfield, The Motley Fool

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Given that you clicked on this article, it seems safe to assume you either own shares of BB&T Bank or are considering buying them in the near future. If so, you’ve come to the right place, as the table below reveals the nine most critical numbers that investors need to know about BB&T before deciding whether to buy, sell, or hold its stock.

But before getting to that, a brief introduction is in order. Tracing its roots back to 1872, BB&T has since transformed into one of the nation’s largest regional banks. Based in Winston-Salem, North Carolina, it operates approximately 1,800 branches across 12 states and the District of Columbia. In addition, as of the end of 2012, it had $184 billion in assets on its balance sheet. As the bank notes on its website: “A Fortune 500 company, BB&T is consistently recognized for outstanding client satisfaction by J.D. Power and Associates, the U.S. Small Business Administration, Greenwich Associates and others.”

As you can see in the table above, from a shareholder’s perspective, BB&T exhibits a number of strengths. It’s better at managing interest rate risk, as evidenced by its above average net interest margin. Its comparatively low non-performing loans ratio suggests it’s similarly superior in terms of minimizing credit risk. And the bank’s healthy fee-based income goes a long way toward hedging against low interest rate environments like the present. It’s largely for these reasons, in turn, that BB&T’s return on equity is roughly 230 basis points better than the average. And it’s also for these reasons that the bank’s shares trade for a dear 1.9 times tangible book value.

Alternatively, if one had to be picky, BB&T’s biggest weakness is its relatively low payout ratio. As a general rule, I prefer banks that pay out no less than a third of their net income to shareholders via dividends. While BB&T comes in just below this benchmark, what’s not captured here is the fact that the bank increased its quarterly distribution by 15% at the beginning of this year. Once that’s factored in, it seems safe to say that the bank will more than satisfy this requirement, too.

Interested in learning more about BB&T?
With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or whether finance stocks are a screaming buy today. The answer depends on the company, so to help you figure out whether BB&T should be on you radar, I invite you to read our premium research report on the company today. We’ll fill you in on both reasons to buy and reasons to sell BB&T, and what areas that BB&T investors need to watch going forward. Click here now for instant access!

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

AltaPacific Bancorp Extends Share Repurchase Program

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By Business Wirevia The Motley Fool

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AltaPacific Bancorp Extends Share Repurchase Program

SANTA ROSA, Calif.–(BUSINESS WIRE)– AltaPacific Bancorp (OTCBB: ABNK), the parent company of AltaPacific Bank, today announced that its Board of Directors has authorized an extension of the Company’s share repurchase program for an additional $1.5 million of the Company’s common stock through April 30, 2014. The Company’s repurchase program was originally announced on May 4, 2012. Since that date, the Company has invested approximately $620,000 to repurchase and retire 94,500 shares of its common stock at an average price of $6.56 per share.

Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchase will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The Company has no obligation to repurchase any shares under this program and the program may be suspended or discontinued at any time.

Charles O. Hall, President and Chief Executive Officer, commented, “The Board’s decision to extend the repurchase program reflects their ongoing confidence in the Company’s future prospects. Management and the Board of Directors believe the repurchase program is an attractive opportunity to enhance shareholder value, while also providing liquidity for shareholders.”

About AltaPacific Bancorp and AltaPacific Bank:

AltaPacific Bancorp is the parent company for AltaPacific Bank. The Company’s stock trades over the counter under the symbol ABNK. AltaPacific Bank is an independent business bank headquartered in Santa Rosa, California and has offices in Santa Rosa, Rancho Cucamonga and Covina, California. The bank is focused on meeting the specialized needs of small to medium-sized businesses and professionals throughout California. The U.S. Small Business Administration has approved the bank as a PLP lender (Preferred Lender Program). PLP status is the highest lending designation granted by the SBA and it is only granted to its most experienced lenders. For additional information, please contact us at (707) 236-1500 or online at www.apbconnect.com.

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of AltaPacific Bancorp and its subsidiary AltaPacific Bank and on information available to management at the time these statements were made. …read more
Source: FULL ARTICLE at DailyFinance

Articles of Interest

Small Business Administration Criticized For Backing Big, Corporate Interests

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By The Huffington Post News Editors

A watchdog group charged this week that the federal Small Business Administration lobbied on behalf of large corporations, adding to criticism that the agency has been letting its definition of small get very big.

This week, the Center for Progressive Reform, a left-leaning nonprofit research and advocacy group, said the SBA has been using money earmarked for mom-and-pop business owners to lobby for corporate entities instead, the Washington Post reported.

On Thursday, Rena Steinzor, CPR‘s president, said during a congressional hearing that the SBA‘s lobbying arm had “consciously diverted its limited, taxpayer-funded resources away from helping truly small businesses.”

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Source: FULL ARTICLE at Huffington Post

News, Politics, Government

SBA head Mills to depart; led through hard times

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Karen Mills, the head of the Small Business Administration as it focused on helping small companies recover from the Great Recession, is stepping down.

Under her leadership, the SBA brought more than 1,000 community banks to its lending programs and it won a commitment from 13 big banks to increase their lending to small businesses over three years. The agency also regained its status as a Cabinet-level agency with Mills at the helm — a status is had lost during the Bush administration. Mills says she will remain in her position until a successor is appointed by President Obama. She joins a number of officials — including former Secretary of State Hillary Clinton — to leave the administration. Many high-level officials leave the government after a president’s first term.

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Source: FULL ARTICLE at Fox US News

Articles of Interest

Obama Administration Loses Yet Another Woman

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By Mark Russell The Obama administration is losing yet another Cabinet-level woman. Karen Mills, the head of the Small Business Administration, announced today that she’ll be leaving the post she has held since 2009, reports Politico . The president issued a statement thanking Mills for cutting through red tape and making life easier for… …read more
Source: FULL ARTICLE at Newser – Home

News, Politics, Government

Small business agency head Mills to leave Obama administration

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Karen Mills is leaving her post as head of the Small Business Administration, opening yet another Cabinet-rank job for President Obama to fill at the start of his second term. Obama says Mills played a leading role supporting start-up businesses and entrepreneurs.

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Source: FULL ARTICLE at Fox News – Politics

White House Press Office

Statement by President Obama on SBA Administrator Karen Mills’ Departure

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By The White House

I want to thank Administrator Mills for her outstanding work on behalf of America’s small business owners and entrepreneurs. I asked Karen to lead the Small Business Administration because I knew she had the skills and experience to help America’s small businesses recover from the worst economic crisis in generations – and that’s exactly what she’s done. Over the last four years, Karen has made it easier for small businesses to interact with the federal government by reducing paperwork and cutting through red tape. She has played a leading role in my Administration’s efforts to support start-ups and entrepreneurs. And she was instrumental in the passage of the Small Business Jobs Act. Because of Karen’s hard work and dedication, our small businesses are better positioned to create jobs and our entire economy is stronger. I want to thank Karen and am grateful for her service.

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Source: White House Press Office

News, Politics, Government

Sandy's Big Price for Small Businesses

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By Richard Crespin, None According to the U.S. Small Business Administration, up to 90% of small businesses get the majority of their business from within two miles of their front doors. In the wake of Superstorm Sandy, the U.S. Chamber Foundation’s Business Civic Leadership Center (BCLC) estimates that between 60,000 and 100,000 small businesses have already been negatively impacted and as many as 30% of them will fail in the coming months.
Source: FULL ARTICLE at Forbes Latest